"Bidding Wars" Breaking Out for San Antonio Homes for Sale

posted by Jim Forsyth
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3 years ago

The local housing market is so hot that Realtors are reporting that buyers occasionally are bidding more than the asking price, and bidding wars and even one bidder paying another not to bid are not uncommon, real estate agents tell 1200 WOAI's Berit Mason.

"There are lots of times so many bidders that the only way the bidder is going to get the house is to bid over the list price," said Scott Myers, a Realtor with Century 21 Real Estate in San Antonio.

Real estate agents tell of people who want a house so badly they have offered up to $10,000 cash to other bidders to stand down and let them buy the home.

The San Antonio Board of Realtors says fully 97% of homes sold in San Antonio in September sold for the list price, which is very unusual. The supply of homes for sale is down to a six year low, prompting homebuilders to fire up activity. That increases construction jobs, and due to the competition from the booming Eagle Ford oil fields, construction workers are making top dollar in San Antonio.

It makes for a situation which puts homeowners who want to sell in a perfect position.

Myers says the local housing market is so strong, it will take a major shock to dampen it at this point.

"I doubt this will go away until the point where interest rates hit 7%," he said. "Then you'll see a change."

That's liable to be a while. A 30 year fixed mortgage, while up from levels of six months ago, can still be found for 3 1/2%, and with the Federal Reserve not likely to raise interest rates any time soon, 7% mortgages are not likely to be raining on the local real estate industry's parade any time soon.

Myers says home buyers should remember a few simple rules.

"Do your homework, find a Texas Realtor in the San Antonio area who you can trust, and act quickly, because there is going to be a lot of competition."